Kolkata, January 29, 2026 – ITC Limited reported continued improvement in the operating performance of its Paperboards, Paper & Packaging segment during the third quarter of FY26, despite persistent industry headwinds from low-priced imports, elevated wood costs and subdued realisations.

Financial & Operating Performance

• Segment Revenue stood at ₹2,202 crore, registering a 2.7% YoY increase.

• Segment Results (PBIT) were ₹198 crore, reflecting a 3.7% YoY decline, largely due to industry pressures.

• Underlying profits (adjusted for shutdown impact) increased 19% QoQ and 11% YoY, indicating structural improvement in core operations.

• Reported profits grew 3.6% QoQ, with margins improving by ~40 basis points.

Maintenance Shutdown

• Performance during the quarter includes the impact of a planned shutdown for maintenance of the High Pressure Recovery Boiler (HPRB) and paper machines.

• The shutdown was planned and maintenance-related; no permanent closures were announced.

Industry Environment

• The segment continues to face:

  • Low-priced paper and paperboard imports

  • High wood prices

  • Subdued realisations

• The Minimum Import Price (MIP) on Virgin Multi-layer Paperboard, effective 22 August 2025, has led to early signs of improvement in net realisations during the quarter.

Raw Material & Cost Outlook

• Wood availability has improved due to proactive plantation initiatives undertaken over recent years.

• However, during the quarter, this benefit was partly offset by severe cyclones during the harvesting season, keeping wood prices elevated.

• Wood prices are expected to moderate going forward, supported by:

  • Accelerated plantations in core areas

  • Development of new plantation regions

  • Collaboration with other wood-based industries

  • Deployment of satellite-based plantation monitoring systems

Packaging & Printing Business

• The Packaging and Printing sub-segment delivered robust growth, driven by:

  • Cartons

  • Flexible packaging

• Strong traction continued in sustainable paperboard and packaging solutions, with the sustainable portfolio having grown 2.4x over the last four years, supported by innovation-led offerings.

Policy & Regulatory Engagement

• The industry, including ITC, continues to engage with policymakers for:

  • Extension of the Minimum Import Price (MIP)

  • Sustained safeguard measures against low-priced imports of:

    • Paperboards

    • Coated paper

    • Uncoated paper

Paper Segment – Key Extracted Updates (Quick Reference)

Revenue

• ₹2,202 crore (+2.7% YoY)

Profitability

• Segment PBIT: ₹198 crore (–3.7% YoY)

• Underlying profits: +19% QoQ | +11% YoY

• Margin improvement: ~40 bps QoQ

Shutdown / Maintenance

• Planned maintenance shutdown

  • High Pressure Recovery Boiler (HPRB)

  • Paper machines

• No permanent shutdowns

Imports & Pricing

• MIP on Virgin Multi-layer Paperboard effective 22 Aug 2025

• Early improvement in realisations observed

• Industry seeking extension of MIP and safeguard

Raw Material (Wood)

• Improved availability due to plantation initiatives

• Cyclone impact kept prices elevated in the quarter

• Price moderation expected ahead

Growth Drivers

• Strong growth in Cartons & Flexibles

• Rapid expansion of sustainable packaging portfolio